CSSB 1001(FIN): "An Act authorizing an advisory vote on a long term financial plan for the state; and providing for an effective date."
00CS FOR SENATE BILL NO. 1001(FIN) 01 "An Act authorizing an advisory vote on a long term financial plan for the 02 state; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. ADVISORY VOTE. At a special election to be held on September 14, 1999, 05 in substantial compliance with the election laws of the state, including absentee voting, the 06 lieutenant governor shall place before the qualified voters of the state a question advisory to 07 the legislature and the governor. The question shall appear on the ballot in the following 08 form: 09 Q U E S T I O N 10 Preamble: The state treasury's reliance upon declining Alaska oil production 11 and volatile oil prices constitutes an unsustainable state budget system. The 12 legislature and governor seek the public's input in choosing a long-term budget 13 plan. Please mark "yes" beside one or both plans that you believe the 14 legislature and governor should proceed to implement as a balanced budget
01 plan or "no" beside one or both plans that you believe the legislature and 02 governor should not implement as a balanced budget plan. 03 "Plan A" Description 04 Summary of Plan A: 05 Balanced Budget Plan: This will preserve the permanent fund dividend, 06 inflation-proof the permanent fund, support public services, and establish a 07 Citizens' Spending Reduction Task Force and a Citizens' Revenue Task Force. 08 The plan will 09 (1)Protect the Permanent Fund: The principal of the Alaska permanent 10 fund will remain untouched and inflation-proofed to protect the value 11 of the fund for current and future generations. 12 (2)Preserve the Dividend: Dividend payments to qualified Alaskans are 13 continued, and the dividend will grow over time. Dividends will be 14 paid based on the market value of the Alaska permanent fund. The 15 dividends payable are projected to be as follows: $1,740 in 1999; 16 $1,700 in 2000; and thereafter approximately $1,394 and higher. 17 (3)Reduce Spending: Reduce state general fund spending at least 18 $60,000,000 over the next two fiscal years, 2000 and 2001. Submit a 19 proposed constitutional amendment to the voters that would reduce the 20 base amount of annual appropriations in art. IX, sec. 16, Constitution 21 of the State of Alaska, and make other changes to establish a 22 meaningful appropriation limit. 23 (4)Accountability: All permanent fund expenditures will be disclosed to 24 each Alaskan who receives a permanent fund dividend check. 25 (5)Explore Spending Reduction and Revenue Options: Establish a 26 Citizens' Spending Reduction Task Force and a Citizens' Revenue Task 27 Force to present options to identify spending reductions and revenue 28 sources. 29 (6)No Income Tax: No personal income tax will be enacted as part of this 30 plan. 31 Plan A Yes [ ] Plan A No [ ]
01 "Plan B" Description 02 Summary of Plan: Plan B has no further state spending reductions. Dividends 03 from the Alaska permanent fund are calculated under the current method. This 04 plan includes a personal income tax. 05 (1)Spending Reductions: No further reductions to state spending. 06 (2)Permanent Fund: Guarantee the Alaska permanent fund is inflation- 07 proofed to protect the value of the principal of the fund for all Alaskans, including future 08 generations. 09 (3)Permanent Fund Dividends: Dividends will not be changed from the 10 current formula and method of calculation. 11 (4)Permanent Fund Earnings Reserve: Immediately transfer 12 $4,000,000,000 from the permanent fund earnings to the constitutional 13 budget reserve fund, with an additional $4,000,000,000 in 2010, and 14 $4,000,000,000 in 2020. Spend the constitutional budget reserve fund 15 earnings for state government services. 16 (5)Income Tax: Impose a personal income tax on certain wage earners 17 projected to be 31 percent of a person's federal income tax, collecting 18 $350,000,000. 19 Plan B Yes [ ] Plan B No [ ] 20 * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).